Research

Report

Capital Markets in Focus Q3 2016

​Transaction volumes in Asia Pacific came in at USD 87 billion in the first nine months of 2016, a stable result compared with the same period last year, We saw continued institutional appetite for real estate in the region but finding value was challenging. Volumes were slightly up in the third quarter after strong performances in China and Singapore, but results in Japan and Australia were weaker as owners held onto stock. Cap rates have compressed to record low in some markets on the weight of capital chasing assets, but positive spreads to risk free rates remain.

Looking forward to the next 12 months, we expect steady deal flow despite continuing stock shortage. Investors will increasingly look for to value in off-market deals, newer or secondary cities as well as alternative sectors.